Posted on Feb 15, 2019
Posted in Real Estate Auctions
Buying property on auction?
We want to make the entire process of buying a property on auction as easy as possible for you. Not everyone who goes to an auction is an experienced bidder. But, even first time bidders can experience a smooth, successful auction.
Have you bought a property on auction before? If not, don’t worry. It’s not difficult. There are so many great opportunities for buyers, like yourself, to get an unbelievably great deal on a fantastic property.
Here are a few of our top tips to help you enjoy a smooth property auction experience.
Van’s Auctioneers tips for buying property on auction
Register as a buyer before you bid
Registration to bid on an auction is very simple. Simply go to the auction venue on the date of the auction, supply your FICA documentation (ID and proof of residence) and fill out the registration card. After that you are ready to take part in the auction.
Get to know the property you want to buy
Before you attend an auction, you should understand the market and the area of the property you want to buy. Get as much information on the property of interest as well as the surrounding properties in the area. Compare property land sizes to actual building sizes as well renovated and unrenovated buildings.
You can get more information from Van’s Auctioneers by filling in the contact form provided on each of our auction pages or by giving us a call.
We also supply information, such as management regulation, architectural guidelines, rates, taxes and levies that you can access on each auction page.
Organise your finances before the auction
What if you find the perfect property for you but someone else snaps it up because you didn’t organise your finances before the auction?
Before you arrive at an auction, make sure your finances are organised. Decide beforehand how much you can afford and what your limit is. Remember to take into account all costs involved, including levies, utility bills, transfer costs, commission, etc.
Establish how you are going to pay for the property. Keep in mind that a deposit is always payable on the day of the auction and immediately after closure of the bid by the highest bidder. If you are the highest bidder you will have to deliver guarantees for the balance of the purchase price within a specified period, typically 45 days, after acceptance of your bid by the Seller.
Make sure you have the auctioneer’s commission amount, which differs from auction to auction, plus 15% VAT (on the commission) over and above the purchase price. Please note, if you win the bid, you are legally bound to pay for the property.
Get familiar with Van’s Auctioneers rules of auction
We provide a document called “Rules Of Auction” on each auction page stating the rules of auction for each auction. We suggest you read over this document to understand the rules and regulations of the auction.
Remember to take into account the voetstoets clause. Properties are sold by Van’s Auctioneers on auction are sold voetstoets or ‘as is’. Basically, the seller is under no obligation to rectify any faults you may find with the property after you’ve purchased it.
Speak to us directly If you are not 100% sure of the auction procedure or whether buying a property on auction is the right way for you to purchase a property, speak to us today. We are more than willing to guide you through the entire auction process as well as make sure you are prepared to bid.
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